Sunny Side Up

Mahindra & Mahindra Scales New Heights

- P. Tharyan

In the compact passenger utility vehicle segment it is bringing in a vehicle code named S201, while in the mid segment it will be a vehicle code named U321 and in the premium segment it would be a vehicle code named Y400.

Auto and farm equipment major Mahindra & Mahindra has finally found its place in the sun after several years of perseverance and hard work, the last three years being significant ones that led to the company transforming itself into a smart behemoth. Among its various plans for the future, the company is bringing in at least three passenger utility vehicles and has identified a plethora of areas to focus on. In the compact passenger utility vehicle segment it is bringing in a vehicle code named S201, while in the mid segment it will be a vehicle code named U321 and in the premium segment it would be a vehicle code named Y400. In a presentation made to stock market analysts and institutional investors, the company made it clear that it was on a roll on all fronts, whether it is utility vehicles, commercial vehicles, electric vehicles or tractors. On a consolidated basis, Mahindra & Mahindra recorded a total income of Rs 93,896 crore in fiscal 2017-18 (FY18) as compared to Rs 89,713 crore in 2016-17 (FY17). Even though it was a growth of 5 per cent, it saw a 103 per cent jump in profit after tax from Rs 3,698 crore to Rs 7510 crore during the period.

RESILIENCE: According to the company, the growth and profits did not come easy. It claimed that the financial year 2014-15 was a year of resilience wherein it saw a drop of 9 per cent in auto domestic sales and a 14 per cent drop in tractor domestic sales. But the company focused on cost control and while revenues declined by just about 3.5 per cent, EBITDA margin declined by just 1 per cent. The company, during the period maintained focus on product development.